Transparency In Asset Management

Some bills recently proposed in California and Kentucky intending to foster transparency in the private equity market were not approved or had some of their disclosure obligations attenuated. A bill in California was even amended to eliminate disclosure on related-party transactions between private equity firms and their portfolio companies¹.

Even though these episodes may be somewhat aligned with promises of the USA's new presidency to cut regulation, they are in contrast with the global trend on regulations requiring greater transparency on private equity practices. They also go against a series of enforcement actions brought by the SEC against private equity firms in the last years resulting from their failure to comply with a number of disclosure obligations.